UP TO £20,000 could be wiped off the average value of a home during the coming months, it was predicted today.

House prices could end 2008 at 10 per cent below the peak they reached in August last year, according to analysts at accountants Grant Thornton.

A fall of this level would wipe around £400 billion off the nation's wealth held in bricks and mortar, while it would also deliver a huge blow to consumer confidence and the wider economy, according to a report in a national newspaper.

Grant Thornton warned that a fall in house prices would make homeowners feel poorer, causing them to tighten their belts and cut back on spending.

This in turn could lead to falling high street sales, leading to possible store closures and job losses.